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RGMacEsq
RGMacEsq, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 15744
Experience:  Licensed Texas General Practice Attorney
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My car loan lender told me that my car loan was charged off.

Customer Question

My car loan lender told me that my car loan was charged off. I did not get a notice
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  RGMacEsq replied 1 year ago.

Thank you for using JustAnswer.

I'm sorry to hear about your situation. Can you tell me what your question is?

Customer: replied 1 year ago.
I made partial payment till oct 13 2015. I never got a notice. They said my car loan has been charged off? They said my only option is to pay full loan amt is this true?
Expert:  RGMacEsq replied 1 year ago.

I see. Again, I am sorry to hear about your situation.

Charging off a loan is an accounting procedure. That is, typically a company has a debt on the "liabilities" side and an accounts receivable on the assets side. If no money comes in, the books are "lopsided" and don't balance. Changing off a debt means essentially taking it off the books to make it balance. It does NOT mean that the debt is forgiven or no longer owed. It really has nothing to do with the collection of the debt itself or repossession of the car.

The lender can seek full payment if you have missed a payment in full. Even making partial payments means that you have not complied with the terms of the contract (which state that you have to make the entire payment). Now if the contract specifies that they will first give you notice and they have not, then they'd be in breach of contract. But they don't have to give you notice to indicate that you breached the contract. They can still pursue you for breach of that contract. And the promissory note that you signed gives them a right to "accelerate" the loan upon breach. That means that if you miss one payment in full, they can tell you that everything is now owed.

So in short, yes, it does sound like they can do this. The charging off has nothing to do with the actual debt. It's an accounting procedure on their side. It's not true that they only can accept the full amount. They can still continue to accept monthly payments. But they can require that you pay the full amount. It's really up to them, I'm sorry to say.

I know this is probably not what you wanted to hear, but it is the law. I hope that clears things up anyway. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for the time and effort that I spent on this answer unless and until you rate it positively (good or better). Thank you, ***** ***** luck to you!

Expert:  RGMacEsq replied 1 year ago.

Did you have any other questions before you rate this answer?

Expert:  RGMacEsq replied 1 year ago.

Are you there? Please note that I am still here, awaiting your response or rating... (please note that rating closes this question out, so if there's nothing else, please rate it so that I can assist other customers that are waiting for answers to their questions)

Expert:  RGMacEsq replied 1 year ago.

Should I continue to await your response, or may I assist the other customers that are waiting?

Expert:  RGMacEsq replied 1 year ago.

My apologies, but I must assist the other customers that are waiting. If there's nothing else, please rate this answer. Please note that I don't get any credit for the time (~ 50 minutes with you today in this chat) and effort that I spent on this answer unless and until you rate it 3 or more stars (good or better) AND press the "submit" button, if applicable. If you feel that I have gone above and beyond in this answer (my average answer is about 10 minutes) bonuses are greatly appreciated. Thank you, ***** ***** luck to you!

▼ RATING REQUIRED! ▼ Please don't forget to Rate my service positively. It's only after you rate that I am credited.

Expert:  RGMacEsq replied 1 year ago.

I see that you have not responded in some time. Please note that this question is still open until you rate it. I believe that I have answered your question, but if you have any other questions, please let me know. If not, and you have not yet, please rate my answer. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, ***** ***** good luck to you!

Expert:  RGMacEsq replied 1 year ago.

Did you have any other questions before you rate this answer?

Expert:  RGMacEsq replied 1 year ago.

I see that you have not responded in some time. Please note that this question is still open until you rate it. I believe that I have answered your question, but if you have any other questions, please let me know.If not, and you have not yet, please rate my answer. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, ***** ***** good luck to you!

Expert:  RGMacEsq replied 1 year ago.

I see that you STILL have not responded in some time. Please note that this question is still open until you rate it. I believe that I have answered your question, but if you have any other questions, please let me know.If not, and you have not yet, please rate my answer. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, ***** ***** good luck to you!

Expert:  RGMacEsq replied 1 year ago.

Did you have any other questions before you rate this answer?

If there's nothing else, please rate this answer. Please note that I don't get any credit for the time and effort that I spent on this answer unless and until you rate it a 3, 4, 5 (good or better) AND press the "submit" button, if applicable. If you feel that I have gone above and beyond in this answer (my average answer is about 10 minutes) bonuses are greatly appreciated. Thank you, ***** ***** luck to you!

▼ RATING REQUIRED! ▼ Please don't forget to Rate my service as OK Service or higher. It's only then I am credited.

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